MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:  29 July 2003
	DOCKET NUMBER:  AR2002082271

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mr. Carl W. S. Chun		Director	
	Ms. Joyce A. Wright		Analyst	

  The following members, a quorum, were present:

	Ms. Margaret K. Patterson		Chairperson	
	Mr. Thomas E. O’Shaughnessy		Member	
	Mr. Walter T. Morrison		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  That he be reimbursed in the amount of $4,000.00 for his education loans.

APPLICANT STATES:  That he has served proudly for more than 4 years and has honored his obligation under his original enlistment contract.  However, the US Army has failed to meet its obligation, has never paid his education loan in the amount of $4,000.00, and now requests that he be reimbursed.  The Army did not abide by the original contract when it failed to pay his education loan.  He enlisted under the Loan Repayment Program (LRP) and reduced his education debt.  He was approximately $4,000.00 in debt.  His recruiter explained the benefits of LRP; however, he never provided information regarding the formalities of enrolling in LRP.  He entered the Army unsure about how his loans would be paid.  He took reasonable measures to ensure that the Army would repay his loans and inquired about LRP.  After receiving no assistance, he contacted the Houston, Texas Military Entrance Processing Station (MEPS).  He discovered that his recruiter had been reassigned and no assistance was offered.  He became frustrated with the entire process and did not want his loan to go into default.  Due to the fear of default, he paid his loan.  He continued to seek assistance for reimbursement of his loan.  He consulted with an attorney regarding his matter.  He was informed that there were no cognizable torts, or personnel claim.  He later spoke with a representative from the Defense Finance and Accounting Service (DFAS) and was informed that he could not be reimbursed.  He was informed to apply to this Board for relief.  In support of his application, he submits a copy of his enlistment contract with associated documents, a letter from Loan Star, and a Federal Stafford Loan Disclosure Statement.

EVIDENCE OF RECORD:  The applicant's military records show he enlisted on 7 July 1998, as a cannon crewmember (13B) for a period of 6 years.  He continues to serve and is presently assigned to Fort Hood, Texas. 

The applicant's DD Form 1966/1 (Record of Military Processing-Armed Forces of the United States) shows that he enlisted for a period of 6 years.

The applicant’s DA Form 3286-66, item 1(a) shows that the applicant enlisted 
for the LRP.  Item 1(b) shows he enlisted for a period of 6 years.

Item 4(a) states “I understand that under this program (LRP) that the government will repay a designated portion of any loan I incurred that was made, insured or guaranteed under Part B of the Higher Education Act of 1965 (Guaranteed Student Loan) or any loan under Part E of such act (National Direct Student Loan) after 1 October 1975 and before I enlist into the Regular Army.  Not to exceed $65,000.”

Item 4(b) states "Enlistment for the LRP ensures me, provided I meet and maintain the prescribed prerequisites, that the portion or amount of loan that may be repaid is 33 1/3 percent or $1,500, whichever is greater, of the unpaid principal balance for each year of service completed."

The applicant provided a copy of a letter from Loan Star, Greater East Texas Servicing Corporation, dated 31 March 1999.  The letter informed the applicant that his loan was paid in full.  He also provided a Federal Stafford Loan Disclosure Statement that indicated that he had borrowed a total of $4,000.00. 

In the processing of this case, an advisory opinion was provided by Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch, which recommended disapproval of the applicant's request.

The opinion stated that there were no provisions or guidance that would allow the Department of the Army to reimburse an individual for payments already made.  Public Law 99-145, Section 671(a)(1) precludes the authorization of payments toward interest and the reimbursement of payments made.  Payments could only be authorized on student loans that had been verified by the loan holder.  The 
US Army does not assume an individual's loan; loan status is the borrower's responsibility.  The borrower is responsible for securing a deferment or forbearance.  Deferment or forbearance would stop payment from coming due.  Eligibility for the LRP does not exempt soldiers from their obligation to repay their loans.

The applicant was provided a copy of this opinion for possible comment prior to consideration of this case but no response was received.

The Loan Repayment Program is a Department of the Army enlistment option authorized by Public Law 99-145.  This option is designed to increase Test Score Category I-IIIA accessions.  Before entering active duty, the loan must not be in default.  The borrower is responsible for obtaining a deferment/forbearance with the loan holder and the loan must remain in good standing throughout the repayment process.  Active Army LRP participants earn their first loan repayment after completion of a full year of active duty and for each full year thereafter, up to
3 years.  Payment of 33 1/3 percent or $1,500, whichever is greater, is authorized annually to the loan holder on the total remaining original outstanding principal balance.  Public Law 99-145, Section 671(a)(1) precludes the authorization of payments toward interest or the reimbursement of payments made.  There are no exceptions to the law.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion(s), it is concluded:

1.  The applicant's enlistment documents, which he signed and initialed, clearly state that LRP will pay remaining, unpaid principal balances of authorized student loans. 

2.  The Board noted the applicant’s request that the Army should reimburse him $4,000 for his education loan.   However, Public Law 99-145, Section 671(a)(1) precludes the authorization of payments toward interest or the reimbursement of payments made.

3.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy this requirement.

4.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

__mp___  ___to___  ___wm__  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2002082271	
SUFFIX		
RECON		
DATE BOARDED	20030729	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	1026	
2.		
3.		
4.		
5.		
6.